The decision to switch from renting to buying a house can be confusing. Many people think renting is cheaper, or that getting approved to buy a home is difficult. They assume they can’t afford to own, when, in the long run, renting might be more costly. While in some cases it may make sense to rent, more often, when it comes to renting vs. buying a house, the cost of a new home could be the same or even less than your current rent payment.
Instead of a rent payment, which goes straight to your landlord every month, paying a mortgage puts money in your pocket. Over time, your home builds value—as you own more of it and the prices on the market go up. You’ll also save money on taxes through homeowner deductions. When you move out of a rental, all you take with you is your furniture. When you sell your house, that increase in value goes into your bank account.
When you’re considering the costs of renting vs. buying a home, remember that a house payment the same size as your rent payment usually gives you a much bigger space for the money. And unlike rent payments, your house payments won’t go up every year—you’ll have the same payment amount for the life of your loan. New homes also help you save dramatically on utility payments because they are more energy efficient.
When you build with Arbor Homes, you also get more included features and your choice of the upgrades that fit your budget. Your new home reflects your style—not whatever seemed best to your landlord.
The decision between renting vs. buying a house may not be as tough as you think. Grab a free credit report and make an appointment for a real life comparison of the costs and benefits of homeownership.